Eagle Point Institutional Income Fund, a non-traded closed-end fund managed by Eagle Point Credit Management LLC, generated a net return of 9.9% over the 12-month period ending Oct. 31, 2024. It also recently exceeded total assets of $150 million, inclusive of available borrowings under a revolving credit facility.
When the fund reached the $100 million milestone earlier this year, Thomas Majewski, its chairman and chief executive officer, drew attention to the strength of the fund adviser’s investment platform and emphasized that the fund was “well-positioned to continue to provide enhanced risk-adjusted returns.” An August letter to shareholders stated that the fund’s investment portfolio performance during the first half of 2024 enabled it to distribute $3.1 million to investors.
Total assets as of Oct. 31 including committed but undrawn capital was $171 million.
During the month of October 2024, the fund completed its 28th consecutive monthly distribution payment, which represented a 10.2% annualized distribution rate. The fund’s net asset value per share as of Oct. 31was $9.96, down approximately 2.6% from $10.23 on Dec. 31, 2023.
Eagle Point Institutional Income Fund is a non-traded closed-end fund registered under the Investment Company Act of 1940, which currently offers shares on a continuous basis via monthly closings.
The fund’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in diversified pools of senior secured loans called collateralized loan obligations. As of the end of October, the fund’s portfolio of 74 CLO equity investments provided exposure to 1,365 different U.S. companies across 61 different industries. This was up from exposure to nearly 1,300 companies in June 2024.
Eagle Point Credit is a specialist investment manager focused on overlooked and underserved credit markets with low to zero historical losses by investing in CLO debt, CLO equity, regulatory capital relief, portfolio debt securities (lending to credit vehicles), and strategic credit. As of Sept. 30, 2024, Eagle Point Credit and its affiliates managed over $10 billion of assets under management, including committed but undrawn capital.
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